The Issue Should Petitioner discipline Respondent's real estate sales- person's license for alleged conduct evidencing fraud, misrepresentation, concealment, false promises, false pretenses, dishonest dealing by trick, scheme or device, culpable negligence, or breach of trust in a business transaction in violation of Section 475.25(1)(b), Florida Statutes?
Findings Of Fact Petitioner is a state government licensing and regulatory agency charged with the responsibility and duty to prosecute administrative complaints pursuant to the laws of the State of Florida. In particular, Petitioner carries out its duties in compliance with Chapters 20, 120, 455 and 475, Florida Statutes and the rules promulgated under authority set forth in those statutes. At times relevant to the inquiry, Respondent was, and is now, a licensed Florida Real Estate salesperson. Her license number is 0591902. That license was issued in accordance with Chapter 475, Florida Statutes. At times relevant to the inquiry, Respondent worked as a licensed real estate salesperson for Ideal Real Estate Central Florida, Inc., t/a Coldwell Banker Ideal Real Estate in Orange City, Florida (Ideal). The broker for that firm was John S. Chinelli. On April 13, 1993, Respondent listed an exclusive right of sale for property owned by Jason and Kelly Foster at 2853 Sweet Springs Avenue, Deltona, Florida. That listing contemplated that Ideal would earn a real estate commission of 7 percent of the gross purchase price. The listing price in the exclusive right of sale was $69,900. In arriving at the sales price, Mr. Foster relied upon Respondent's advice. That advice included a consideration of the price received for the sale of comparable homes. The establishment of comparable prices as a means to arrive at the listing price for the Foster property involved the use of the Coldwell Banker buyer/seller presentation booklet, as well as a marketing analysis. The price $69,900 was chosen to attract those buyers who were looking for homes that cost less than $70,000. That choice was designed to garner more interest in the home. While the Foster home was being advertised, it was available through the multiple listing pool. Respondent showed the house two times between April 13, 1993, and May 14, 1993. This did not involve a showing to any prospective buyers. Other brokers or salespersons showed the house twice to prospective buyers, but no offers were generated from those showings. Subsequently, Respondent suggested to Mr. Foster that the Foster residence might be appropriate for her use. Respondent offered to buy the Foster property for $65,000. On May 14, 1993, Respondent and Mr. Foster entered into a contract for sale and purchase of the Foster residence. The purchase price was $65,000. Respondent deposited $500 into the escrow account managed by Ideal in furtherance of her interest in the property. The earnest money deposit was placed with Mr. Chinelli pending the closing of the sale. The contract called for Respondent to assume an existing mortgage of $63,556. The contract identified that the Respondent was a licensed real estate agent in Florida, but the purchase was not being made through Ideal. Under this contract, the real estate commission that had been contemplated initially would not be paid to Ideal and Respondent. When Respondent entered into a contract to buy the Foster property, she did not tell Mr. Foster that she would no longer be representing him as a real estate salesperson. The contract between Respondent and Mr. Foster called for a closing date on or before June 30, 1993. In entering into the agreement for Respondent to purchase the home, Respondent told Mr. Foster that she intended to personally occupy that property. Respondent never told Mr. Foster that she entered into the contract to purchase his home with the intent to sell the home to another person. Originally that was not her intention. Respondent held to the view that in the event that her purchase of the home was not concluded, Respondent would still represent Mr. Foster in his desire to sell the home. This is taken to mean that she would be representing Mr. Foster as a real estate salesperson. Sometime around June 20, 1993, Kai and Denise M. Hansen, husband and wife, contacted Ideal to show the Hansens property in the Deltona area. Respondent assisted the Hansens in this pursuit, acting as a real estate salesperson. There was no written agreement between Respondent or her firm signed with the Hansens to represent them in their attempt to purchase a home. Respondent showed the Hansens 8 to 12 homes in the Deltona area. The Hansens were not interested in purchasing those homes. At that point, Respondent suggested that the Hansens look at the home that she was purchasing from Mr. Foster. Respondent told the Hansens that Respondent was buying the Foster house from the Fosters who were moving out of town and that Respondent was helping the Fosters "out of a bind." Respondent told the Hansens that the home might be "too big for her anyway." Respondent told the Hansens that if she could help the Hansens out she would sell the Foster home to the Hansens if the Hansens liked that property. If a suitable home had been found through a real estate listing, other than the Foster residence, a commission would have been paid from the seller of the hypothetical house to the broker for Ideal. In that circumstance, the Hansens would not be responsible for paying a commission to the Respondent or Ideal. The properties other than the Foster property which Respondent was showing the Hansens were shown by Respondent as a sub-agent for the sellers. Respondent showed the Hansens the Foster residence during the week of June 20, 1993. On June 24, 1993, Respondent entered into a contract with the Hansens for sale and purchase of the Foster property. An addendum to that contract indicated that "this contract is contingent upon seller obtaining clear Title on 2853 Sweet Springs, Deltona, FL." The Hansens paid a $1,000 earnest money deposit toward the purchase of the Foster property. That deposit was placed in the escrow account for Ideal. That deposit was to be held until the closing date scheduled for July 16, 1993. Again, it was not contemplated that a real estate commission would be paid to Respondent and Ideal. The price arrived at between Respondent and the Hansens to purchase the Foster property was $72,500. Initially, Respondent had offered to sell the property for $73,000. The Hansens counter-offered to pay $72,000 leading to the final purchase price of $72,500. The contract between the Respondent and the Hansens called for an assumption of a mortgage in the amount of 63,500. Although Respondent had advised the Hansens that the property was being purchased from the current occupants, the Fosters, Respondent did not advise the Hansens of the price the Respondent was paying the Fosters to purchase that property. Respondent never advised the Fosters that the Hansens had sought to purchase the Foster home and that Respondent had entered into a contract with the Hansens for the Hansens to purchase that property. On June 29, 1993, the closing occurred between Respondent and the Fosters and a warranty deed was prepared noting the change in ownership. At the closing Respondent told the Fosters that she still intended to occupy the home. On July 16, 1993, the closing occurred between the Respondent and the Hansens and a warranty deed was drawn conveying the property from the Respondent to the Hansens. As established by Mark A. Carper, a real estate appraiser, the value of the Foster property on April 13, 1993 was between $65,000 and $72,500. In anticipation of moving into the Foster home, Respondent had made arrangements to move out of the residence where she had been living by giving notice that she intended to move.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED That a Final Order be entered which dismisses the administrative complaint against Respondent. DONE AND ENTERED this day of July, 1997, in Tallahassee, Leon County, Florida. CHARLES C. ADAMS Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (904) 488-9675 SUNCOM 278-9675 Fax Filing (904) 921-6847 Filed with the Clerk of the Division of Administrative Hearings this day of July, 1997. COPIES FURNISHED: Christine M. Ryall, Esquire Department of Business and Professional Regulation Division of Real Estate 400 West Robinson Street, Suite N-308 Orlando, Florida 32801-1772 William A. Parsons, Esquire Woerner & Parsons 2001 South Ridgewood Avenue South Daytona, Florida 32119 Henry M. Solares, Division Director Division of Real Estate 400 West Robinson Street, Suite N-308 Orlando, Florida 32802-1900 Lynda L. Goodgame, General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792
The Issue Whether Petitioner's application for a real estate salesman's license should be approved?
Findings Of Fact Sometime in late February or early March, 1988, Petitioner submitted an application for licensure as a real estate salesman. Petitioner's answers to questions 6 and 7 of the application reflected that in June or July 1987, he had pled guilty to conspiring to defraud the United States and was sentenced to serve 2 years on probation and assessed a $5,000 fine. Based on Petitioner's answers to questions 6 and 7 of the application, Respondent denied Petitioner's application for licensure. Petitioner's conviction for conspiring to defraud the United States was due to his involvement with two Farmers Home Administration projects to build low-income housing in Michigan. In 1983, the Farmers Home Administration had allotted approximately $500,000 to fund each of 2 low-income housing projects consisting of 18 units each. The funding had been committed to a developer other than Petitioner. The developer had been unable to arrange for the projects to be built. The developer had let out bids on both projects. The bid on one project came back under the amount allotted; however, the bid for the other project came back at approximately $105,000 over the amount allotted. At this point, Petitioner was contacted by the developer and became a partner in the development of the two projects. Petitioner's job was to get the projects built. Petitioner determined that it might be possible to construct the two projects for the total amount allotted, $1,000,000, if both projects were bid out together, since efficiencies should be achieved by bidding both projects as one. Petitioner let out a bid for the construction of both projects. The bid came back at a slightly higher amount than that allotted. However, after some negotiations with the Farmers Home Administration the two projects were allowed to proceed. However, the fact still remained that one project was more expensive than the other to build, and that the costs of the more expensive project exceeded the amount allotted by the Farmer's Home Administration. In order to resolve this problem, Petitioner falsified some documents to make the accounting for each project show that both projects came in under the amount allotted even though this was not true. In effect, Petitioner used money allotted to the less expensive project to pay for the more expensive project. In 1985, the Federal Bureau of Investigation began an investigation of all Farmers Home Administration projects in Michigan. Out of this investigation, Petitioner's involvement with the two projects was uncovered, and his subsequent plea of guilty and conviction were due to his falsifying the documents. Petitioner held a real estate salesman's license in Michigan from 1975 to 1978. From 1978 to the present time, Petitioner has held a real estate broker's license in Michigan. No disciplinary action has been taken by the State of Michigan on account of Petitioner's actions which led to his conviction. Also, no action has ever been brought in Michigan arising out of Petitioner's activities representing buyers and sellers of real estate. Petitioner has paid $150.00 of the $5,000.00 fine imposed by the Federal government. He has paid when he has had work. Petitioner is in the process of filing for Chapter 11 reorganization in order to facilitate the payment of some debts.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Florida Real Estate Commission issue a Final Order approving Petitioner's application for license as a real estate salesman. DONE and ORDERED this 14th day of November, 1988, in Tallahassee, Florida. JOSE A. DIEZ-ARGUELLES Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 14th day of November, 1988. APPENDIX TO RECOMMENDED ORDER, CASE NO. 88-3479 The parties submitted proposed findings of fact which are addressed below. Paragraph numbers in the Recommended Order are referred to as "RO ." Petitioner's Proposed Findings of Fact Proposed Finding of Fact Number Ruling and RO Paragraph Accepted. Accepted. Accepted. Rejected as not a finding of fact. Accepted. Rejected as not a finding of fact, but see Conclusions of Law section of RO. Rejected as not a finding of fact. Respondent's PRO posed Findings of Fact PRO posed Finding of Fact Number Ruling and RO Paragraph Accepted as modified in RO 1. Accepted as modified in RO 3. Subordinate. Accepted as modified in RO 2, 4 and 12. Accepted as modified in RO 11 and 12. Accepted as modified in RO 16 and 17. First 7 words are not a finding of fact; remainder of sentence is Rejected as contrary to the weight of the evidence. COPIES FURNISHED: George Joseph Laufersky 7 Oak Lane Lady Lake, Florida 32659 Lawrence S. Gendzier Assistant Attorney General 400 West Robinson Room 212 Orlando, Florida 32801 Darlene F. Keller, Executive Director Division of Real Estate 400 West Robinson Orlando, Florida 32801 Bruce D. Lamb General Counsel Department of Professional Regulation 130 North Monroe Street Tallahassee, Florida 32399-0750
The Issue The issue is whether Petitioner's application for licensure as a real estate instructor should be approved.
Findings Of Fact Based upon all of the evidence, the following findings of fact are determined: Mr. Haller is a highly educated individual, having received two undergraduate degrees, two master degrees, and a law degree from the University of Florida. He is licensed as a real estate broker, having received his license in 1978; is a licensed commercial pilot (and a current member of the Civil Air Patrol); and is certified by the State as a teacher in the areas of chemistry, mathematics, general science, and exceptional student education. Also, Mr. Haller was just accepted for admission to the University of North Florida in the Master of Science in Computer and Information Sciences program for the 2004 summer term. Mr. Haller was licensed as a member of The Florida Bar in 1982 and for a number of years maintained a law practice as a sole practitioner in Gainesville, Florida. Much of his work involved real estate transactions. Around 1996, however, he suffered a nervous breakdown, which resulted in his hospitalization. During that illness, he was unable to attend to client matters, which resulted in several complaints being filed against him by former clients, and led to the filing of charges by The Florida Bar. (However, no criminal charges arose out of these complaints, and the clients never pursued the matter in civil court.) Pending the outcome of the disciplinary matter, he was placed on The Florida Bar's inactive list on December 26, 1996. Because of his fragile state of health, rather than contesting the charges, Mr. Haller chose to voluntarily resign from The Florida Bar on June 19, 1997, with leave to seek readmission after five years, effective nunc pro tunc (retroactive) to December 26, 1996. He has not yet applied for readmission but says he intends to do so. Since The Florida Bar matter, and with the exception of the corollary matter described in Finding of Fact 4, there have been no other blemishes on Mr. Haller's record in any respect. Based on The Florida Bar's action, on July 9, 1998, the Department filed an Administrative Complaint against Mr. Haller, as a real estate broker, charging him with having had a registration suspended, revoked, or otherwise acted against in violation of Section 475.25(1)(s), Florida Statutes (1997). (The record shows that the Department and Commission had a complete record of all allegations pending against Mr. Haller when he resigned from The Florida Bar.) On October 14, 1998, and after an informal hearing in which he admitted the allegations of fact, the Commission entered a Final Order suspending Mr. Haller's real estate license for three months and requiring that he reimburse the Commission in the amount of $240.00 for investigative costs. The license was subsequently reinstated after the suspension time had expired and remains in good standing at this time. Mr. Haller is currently employed as a chemistry teacher for the Duval County School District. He is also a mathematics instructor at Florida Community College in Jacksonville. In July 2003, he was offered a position as a real estate instructor at the Watson School of Real Estate in Jacksonville, Florida. He has been offered a similar position at Florida Community College. In order to be employed as an instructor, Mr. Haller needed to secure a real estate instructor's license from the Commission. To that end, he filed an application with the Commission on September 15, 2003. However, it was denied by the Commission on the ground that his law "registration" had been disciplined by the Florida Bar in 1997. It is fair to infer from the Transcript of the Commission's meeting on February 18, 2004, that the Commission did not believe that Mr. Haller was completely candid when he responded to an inquiry regarding the circumstances surrounding his resignation from The Florida Bar. The Commission's denial triggered the filing of the request for a hearing. As clarified by the parties at the hearing, in order to become licensed, Mr. Haller must demonstrate that he is now qualified for licensure "because of lapse of time and subsequent good conduct and reputation, or other reason deemed sufficient," so that it affirmatively appears that the "public and investors will not likely be endangered by the granting of the registration." § 475.17(1)(a), Fla. Stat. In other words, Mr. Haller must demonstrate that since his resignation from The Florida Bar in mid-1997 (which is the disqualifying offense), his conduct and reputation have been such that it is unlikely that if he is licensed as a real estate instructor, the public and investors will be endangered. Mr. Haller has been, and is now, employed as a public school teacher in Duval County, as well as in the community college system. In these positions, he is entrusted to teach and interact with students on a daily basis. A letter from one of his supervisors corroborates Mr. Haller's testimony that he is performing those tasks in a reputable and competent manner. In addition, Mr. Haller currently holds an active real estate broker's license, which allows him to conduct transactions on behalf of investors and members of the public. There is no evidence in the record that he is a threat to investors or the public in his role as a real estate broker. Indeed, the evidence shows that he is not. If the instructor's license is issued, instead of dealing with investors and members of the public in a broker's capacity, Mr. Haller will be teaching applicants who are seeking a real estate license. Testimony by an active investor who has been involved in at least 2,000 real estate transactions in the Alachua County area over the last 30 years or so, some handled by Mr. Haller, established that Mr. Haller is a "veteran of real estate transactions" since the 1970s, and that his honesty and integrity since his resignation from The Florida Bar have not been questioned. A member of the Endowment Board for Santa Fe Junior College, which has raised almost $30 million for the college, and who is a long-time realtor, further established that Mr. Haller possesses the humility, education, and character necessary to be a good real estate instructor. Another witness testified that he would have no hesitation in using Mr. Haller for a real estate transaction. Finally, a retired certified public accountant who is now employed by the University of Florida testified that Mr. Haller possesses the character, intelligence, and experience to be licensed as an instructor and would be an asset to the profession. The foregoing evidence supports a finding that Mr. Haller has sufficiently rehabilitated himself since his resignation from The Florida Bar through meaningful employment in the public and community college school systems, and that he will pose no threat to the public or investors as a real estate instructor. The evidence further supports a finding that Mr. Haller enjoys a good reputation in the community, and that his conduct since mid-1997 has been good. Because the statutory criteria have been satisfied, the application should be approved.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Florida Real Estate Commission enter a final order granting Petitioner's application for licensure as a real estate instructor. DONE AND ENTERED this 20th day of July, 2004, in Tallahassee, Leon County, Florida. S DONALD R. ALEXANDER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 20th day of July, 2004.
The Issue The issue for consideration in this case is whether Respondent's license as a real estate salesperson should be disciplined because of the matters alleged in the Administrative Complaint filed herein.
Findings Of Fact At all times pertinent to the issues herein, the Department of Professional Regulation's Division of Real Estate and the Florida Real Estate Commission were the state agencies in Florida responsible for the licensing of real estate professionals and the regulation of the real estate profession in this state. Respondent was licensed as a real estate salesperson under license number SL 0566467. Mr. Brennan was licensed in Florida as a salesperson in 1990, and his initial license expired on March 31, 1992. It was renewed on time and due to expire a second time on March 31, 1994. Consistent with Florida Real Estate Commission requirements, a real estate salesperson is required to complete no less than 14 hours of continuing professional education in the two years prior to license renewal. Of these, 11 hours of course work can be in a specialized area, but at least 3 of the 14 hours must consist of core law, legal information designed to update the salesperson on the changes to Commission rules and policies and changes in the law as it relates to the practice of real estate in the interim since the prior renewal. Licensees periodically are put on notice of the requirement for continuing education and what it must entail, and with or before application for renewal, must certify as to the taking, testing and passing of the required courses. If a licensee certified compliance with the continuing education requirement but, in fact, was not in compliance, that individual would be in violation of the Commission rules even if the required fees were paid. On January 27, 1994, Respondent applied for renewal of his salesperson's license which was due to expire on March 31, 1994. Along with his application for renewal, Respondent submitted his check for $68.50 made payable to the Department, and affirmed he had completed the required 14 hours of continuing education for the license period beginning April 1, 1994. The license was renewed. By letter dated June 15, 1995, Respondent was notified by Barbara Rohloff, a records supervisor for the Department, that his 1994 renewal application had been selected for audit. As a result of that audit it was determined that Respondent had completed the required 11 hours of specialty education and an additional 3 hours in "Agency: Choices, Challenges and Opportunities," also a specialty course but not approved for credit toward the required "core law" portion of the continuing education requirements. Therefore, though Respondent had completed 14 hours of continuing education as required, that 14 hours did not include the required 3 hours of core law. The 11 hours of specialty education Respondent took was course number 100 of the Realtors Institute Course and was approved by the Florida Association of Realtors. The 3 hour course was taken through the Coldwell Banker School of Real Estate in Sarasota in November 1993, and was also an approved course, but it did not meet the requirements for the 3 hour core law course. As a result of this discovery, a determination was made to charge Respondent with misconduct as alleged in the Administrative Complaint. Respondent contends he took the above-described courses in the misinformed opinion that by doing so he was meeting the Commission requirements. When he was first licensed, he was advised he must take and pass 14 hours of continuing education every two years. The 11 hour course was taken in 1991, in advance of the renewal period, upon the representation of the Century 21 instructor with whom the course was taken that was acceptable. When Respondent went to take that 11 hour course, along with his wife, also licensed as a real estate salesperson, a representative of the Sarasota Board of Realtors advised them that the 11 hour course was acceptable toward the continuing education requirements and that they would need an additional 3 hours. When the real estate brokerage with which the Brennans had placed their licenses was sold to another brokerage, Coldwell Banker, they moved their licences to the new brokerage and went to work with that firm. Coldwell Banker offered the 3 hour course which Respondent took and which has been determined not to be acceptable, and Respondent claims the representative of Coldwell Banker advised him, wrongly, it would appear, that the 3 hour course in issue would meet the Commission's requirements. Though this allegation is self- serving to the Respondent, it was not contradicted and is accepted. Respondent denies any intent to mislead or misrepresent. He gained no advantage by taking the instant 3 hour course over the required course. He saved no time or money, it would appear, and there appears to be no reason for him to have intentionally taken the wrong course or to mislead the Commission. Through all his post-audit communication with the Commission, he relates, he was never advised, in a way he understood, just what he should have done in place of what he did, until the day of the hearing when it was explained to him by Petitioner's counsel. Respondent now admits that he did not have the required hours in the correct course, but adamantly asserts he did not, at the time, know or understand what was the problem. That would appear to be the case, and it is so found. The Petitioner presented no evidence to demonstrate an intent to mislead or to misrepresent by Respondent.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is recommended that the Florida Real Estate Commission enter a Final Order dismissing the Administrative Complaint against the Respondent, Edward John Brennan. DONE and ENTERED this 3rd day of October, 1996, in Tallahassee, Florida. ARNOLD H. POLLOCK Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 SUNCOM 278-9675 Fax Filing (904) 921-6847 Filed with the Clerk of the Division of Administrative Hearings this 3rd day of October, 1996. COPIES FURNISHED: Steven W. Johnson, Esquire Department of Business and Professional Regulation Division of Real Estate 400 West Robinson Street, N-308 Post Office Box 1900 Orlando, Florida 32803-1900 Edward John Brennan 4114 Pro Am Avenue Bradenton, Florida 34203 Lynda L. Goodgame General Counsel Department of Business and Professional Regulation 1940 North Monroe Street Tallahassee, Florida 32399-0792 Henry M. Solares Division Director Division of Real Estate 400 West Robinson Street Post Office Box 1900 Orlando, Florida 32802-1900
The Issue The issue in this case is whether Petitioner's two applications for continuing education course approval should be denied for the reasons set forth in the Florida Real Estate Commission's Notices of Intent to Deny, which were issued on February 19, 2009.
Findings Of Fact Petitioner Jon D. Tremper is a licensed real estate sales associate. In 1988, Petitioner established a home inspection company and has since performed several thousand inspections of properties in Florida. In 1999, Petitioner established The Home Inspection Academy, which he describes as a "private school providing training to the home inspection industry." Petitioner has developed and taught home inspection and construction-related courses to individuals and to groups including the Florida Association of Building Inspectors. Petitioner applied to the Department of Business and Professional Regulation, Division of Real Estate (Division) for continuing education credit for two courses that he developed and wished to present for credit to licensed real estate professionals: "Homeowner's Guide to Hurricane Protection & Insurance Discounts," and "Protecting Homes from Termites, Water Damage and Mold." The courses were placed on the FREC agenda for consideration at its January 20, 2009, meeting. The FREC denied both courses by way of Notices of Intent to Deny issued on February 19, 2009. The FREC's intent to deny was based on Subsection 475.182(1)(a), Florida Statutes (2008),1 the relevant portion of which provides: Approval or denial of a specialty course must be based on the extent to which the course content focuses on real estate issues relevant to the modern practice of real estate by a real estate licensee, including technology used in the real estate industry. Each Notice contained the following finding of fact: The Director of the Division of Real Estate suggested that the course could be denied due to the subject matter of the course not being related to the profession of real estate and not related to the nuts and bolts of real estate. "Homeowner's Guide to Hurricane Protection & Insurance Discounts" is a three-hour course. The learning objectives of the first hour are to understand the impact of recent hurricanes in Florida, which structures survived the storms and why they survived, and the wind resistance upgrades that are available to homeowners. The learning objectives of the second hour are to understand what insurance companies are looking for and how a homeowner can lower his premium, where to get help in determining cost-effective wind resistance upgrades, and the necessity of taking the initiative in dealing with insurance companies. The learning objectives of the third hour are to understand the "My Safe Florida Home" program offered by the State of Florida, the importance of and procedures for documentation of home improvements, and the best resources available for protecting a home from hurricanes. "Protecting Homes from Termites, Water Damage and Mold" is a three-hour course. The learning objectives of the first hour are to know the threats of termites, water damage and mold to Florida homes, where to get help when a problem is found, and the seven ways to ensure that a home stays termite free. The learning objectives of the second hour are to know and understand the unique elements of Florida climate, the importance of keeping water out of Florida homes, and the seven ways to prevent water damage. The learning objectives of the third hour are to know and understand the conditions for mold growth in Florida homes, why mold remediation is necessary, and the seven ways to keep mold out of Florida homes. Ralph McCoig, the chairman of the FREC, has been a real estate agent and broker for nearly 30 years. Since 1994, Mr. McCoig has been the owner and broker of Edita Realty in Rockledge. Mr. McCoig testified that Petitioner’s courses were of great interest to homeowners, but were not really relevant to a real estate licensee's practice. Mr. McCoig stated that a licensee's duties to a seller are to establish a price for the house based on the current market, to market the house, and to negotiate the contract of sale. A licensee's duties to a buyer are to find houses, show the properties, and assist the buyer in obtaining financing. Licensees do not give opinions on hurricane insurance requirements or on termite, water or mold damage. Mr. McCoig stated that home inspection companies, insurance agents, and licensed pest control companies are the professionals qualified to deal with the matters discussed in Petitioner's courses. A real estate licensee would be better served to retain these professionals on his client's behalf, because they are the best sources of relevant information and because the real estate professional does not want to incur liability for practicing beyond his area of expertise. Mr. McCoig testified that the FREC determined that Petitioner’s courses were not applicable to a real estate professional's job and not appropriate for continuing education credit. Petitioner testified that his courses were not designed to make a realtor an expert in hurricane protection or termite, water and mold damage, but to give the realtor the ability to offer common sense advice to his clients. Petitioner pointed out that the standard contract for sale and purchase of real property in Florida contains provisions regarding disclosure of wood-destroying organisms and mold, and that Section 627.711, Florida Statutes, requires insurers to take certain actions regarding discounts for hurricane reinforcements. Petitioner opined that realtors should be familiar with these matters in order to properly serve their clients. Petitioner also testified that the Department of Business and Professional Regulation, Bureau of Education and Testing's web site discloses "thousands" of approved courses, including some whose titles appear equivalent to Petitioner’s proposed courses and some of which appear frivolous, such as "Feng Shui for Realtors." In rebuttal, Mr. McCoig testified that the FREC has recently denied applications for courses related to Feng Shui concepts. Mr. McCoig stated more generally that the current FREC board has taken a more hands-on and restrictive approach to the approval of continuing education courses than had been the practice in previous years, when the Division had apparently been delegated authority to approve courses at the staff level. The FREC board intends to whittle the list of approved courses down to a manageable number directly related to the "nuts and bolts" of real estate practice in Florida.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that the Florida Real Estate Commission enter a final order denying Petitioner's applications for continuing education course credit for courses titled "Homeowner's Guide to Hurricane Protection & Insurance Discounts" and "Protecting Homes from Termites, Water Damage and Mold." DONE AND ENTERED this 19th day of June, 2009, in Tallahassee, Leon County, Florida. S LAWRENCE P. STEVENSON Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 19th day of June, 2009.
